STANDARD SERVICES AND FEES

THE PRELIMINARY ASSESSMENT

The delivery of effective professional and executive service depends upon well defined assignments, qualified personnel in specified roles, sufficient authority and clear goals. We depend upon these conditions being present in the settings in which we serve clients. We must confirm their existence or redefine the setting. To establish these conditions takes fact-finding, analysis, discussion and mutual agreement. An Officer of our firm and the client/prospect define all conditions. We prepare for this discussion and definition process through a Preliminary Assessment of the situation we face.

Preliminary Assessments take many forms (see table below.) We complete the Preliminary Assessment by a specified date and within a specific fee. We base fees on our estimate of the time required to complete the assessment and report. We price the time at approximately 60 percent of our Standard Rate (see Daily Rate Table). We expect no profit from preliminary work. Such assignments tutor our understanding, define client needs and help us decide whether we should work together.

We deliver a detailed report, documenting our findings and recommend a course of action. Or, we complete a presentation package such as a Private Placement Memorandum, loan request, offering booklet, feasibility study, market report or a Valuation. If we stop our work after the Preliminary Assessment, you may use this document as you please.

Our standard preliminary assessment procedures include:

Types of Preliminary Assessments and Fees

All preliminary assessment fees exclude out-of-pocket expenses. These expenses may include travel and field, materials, legal or accounting counsel, database creation or usage, special handling, multiple copies or any special-contract services. These will be billed as extras. Each study/planning process includes, at a minimum, two Senior Officer's days, four Officer or Senior Associate's days, four Staff Associate's days and seven Staff days. Even if time demands exceed these limits, you pay no more than the specified fees.

ADULT CONTINUING EDUCATION

The current needs of organizations, intent upon improving the quality of their products and services,to develop their workforce requires on-site and action learning activities. These learning activities need to be workforce-centered and tailored to meet the unique need of a client organizations.

Basic cost for 13 week course    $3,900 plus materials and out-of-pocket expenses.

Additional participants above 10    $325 each.

THE PRESIDENT'S COUNSEL^(sm.)

Our President's Counsel^(sm.) Team works directly with a board, trustee, president (CEO) or owner. A critical services agenda can be established in one of two ways. We prefer to start by conducting a Preliminary Assessment to develop our understanding of an organization, its setting and the issues facing it. When we complete our research, analysis and recommendations, we prepare a report. This report becomes the basis for our discussions. The key executive of the organization and our team leader define the service agenda. Then, they compose a service team to act on our recommendations and plan.

The second method for deciding upon an agenda unfolds more slowly. A representative of our firm meets regularly with the key client executive. Together, they examine the critical issues and decide upon a service agenda, service team, schedule and budget. Executives who want to move at a slower pace or who want to lead an exploration of their setting, issues and organization choose this approach.

We may use one of three monthly plans to start a President's Counsel^(sm.) relationship.

THE PRESIDENT'S COUNSEL⁽sm.) Monthly Programs and Fees

Our assignment begins with a written Agreement and an Assignment Memo. We assign an officer or Senior Associate to manage each client service program. Usually, the assignment will require additional team members. We assign them and add their cost to the specified monthly fee (in the table above). Sometimes, we substitute a portion of the program manager's time for the additional personnel. The rates for each type of person assigned to a service team can be found in the next table (page 3). Each team receives review and counsel from a Senior Officer to assure quality client service and timely performance. Our firm absorbs this cost.

In a President's Counsel^(sm.) relationship we commit to do "whatever may be required for our client to succeed." We will muster additional services, including executive and staff time, to complete our assignment. Additional services must be detailed in writing in advance and mutually approved by both the client and our manager.

All our out-of-pocket expenses are a client's responsibility. We bill expenses twice a month. Prompt expense reimbursement and timely monthly fee payments must be made. Failure to make timely payments will result in suspension of our services.

SPECIAL PROJECTS/PROBLEM SOLVING

Our firm often receives inquiries from executives or owners needing assistance to complete a project or solve a problem. Usually, these situations require immediate attention. If, after a brief review we decide to help, we do so on an open assignment billing daily or hourly fees. We bill this time at Standard Rates.

The Standard Rates we use for these assignments can be found in the following table. To lower the cost of special assignments, a client pays an initial fee of $5,000 for up to 30 hours of service, with the lower project rates applying to additional hours. Or, a client may pay a minimum fee of $3,600 and a standard incentive fee upon completion of the assignment.

Each project or problem solving case requires additional definition and specification of expected results. The objective(s), deadlines and service(s) to be provided are defined and detailed in writing.

DAILY AND HOURLY FEES

We price and bill excess time according to the following table. That is, time we employ for problem solving, project work, President's Counsel^(sm.), Team additions beyond the hours specified in a client's agreement. The table displays both daily and hourly rates. Daily rates include three hours for travel and preparation. We bill additional travel time at 60 percent of the earned rates. Clients pays all out-of-pocket expenses incurred in an assignment.

Daily and Hourly Fees

Each daily rate fee includes three hours for preparation and travel time.

To understand our classification of personnel . . . a Senior Officer is the President or Executive Vice President; an Officer is Senior Vice President, Vice President, or Assistant Vice President. We designate staff members Senior Associate, Associate or Staff Associate based on their education, experience and the proven ability to perform. Staff means qualified utility support personnel serving as needed. Finally, we designate Associates, with experience equal to an Officer, a Senior Associate.

THE PRESIDENT'S COUNSEL^(sm.) SERIES

Information, critical exchange and executive briefing all play a part in the President's Council Series^(sm.). Our firm organizes these one-day sessions on critical management topics to refine, refresh and expand a President's ability to manage and lead. The series also helps a CEO build sound relationships with his key executives, owners and advisors.

President's Council Series^(sm.) Fees

Each Series' day runs from 8:30 a.m. to 5:30 p.m. The daily fee includes text materials, lunch and refreshments at break time. Close to home locations preclude hotel expenses and minimize the travel time required.

©Copyright 1998, Presidential Services Ltd.